Natland wants to protect the value of assets from the debt-laden Arca group that are facing bankruptcy

24.8.2023

A company from the Czech investment group Natland has taken an active approach to solving the problems of the Arca group, which has been insolvent for several years and is carrying billions of dollars in debt.

The Arca Group has had several years to come up with its own solution to the situation and divest assets not only in its energy division. However, Arca did not take any action in this matter. On the contrary, it is suspected that it has used the period of opaque insolvencies in the Czech Republic and Slovakia to continue to hide assets from its creditors. Arca thus lost the trust of its creditors because of these actions, which culminated, among other things, in the non-approval of the reorganisation plan of Arca Investments in the Czech Republic.

Arca’s long-term unresolved crisis is thus causing a decline in the value of its assets. The unsustainable situation was resolved by the largest secured creditor, which was J&T Bank, through the redemption of loans and their subsequent assignment to a Natland Group company. The latter became the key creditor in the insolvency of Arca Investments in the Czech Republic and the largest creditor within the energy division of the Arca Group in Slovakia. The aim is to maximise the value of the purchased receivables and their return.

As a creditor, the Natland Group company is legitimately claiming reimbursement in accordance with the relevant contractual documentation and legislation. In excess of its contractual obligations and commitments, the Natland group company organised the tender in order to raise not only publicity but also interest in rescuing energy companies threatened with bankruptcy as a result of the managerial failure and inaction of the Arca group. The Natland Group treats the assets securing the claims with caution and professional care, as it is aware of their important role in the Slovak regions. Natland is prepared to protect the value of the assets despite hostile actions by Arca and its affiliates.

“It is with great disillusionment that we have been following the fabricated speculation and rumours of the Arca group against our group and the original financing bank. Likewise, we intend to oppose any purposeful actions that may be aimed at reducing the satisfaction of creditors’ claims due to the abuse of certain insolvency law institutions. We intend to examine rigorously all diversions of funds to persons linked to the Arca group and the liability of their controlling persons for asset impairment. We are not the only ones who are convinced that hundreds of millions of euros have disappeared to unknown places in Arca. For us, as believers in the principle of socially responsible business, the behaviour of a debtor who refuses to take responsibility for the results of its business, tries to shift its personal managerial failures onto institutional creditors and attempts to avoid paying its debts is absolutely unacceptable.”

Natland Group has been operating on the Czech and Slovak markets for more than 20 years, has many years of experience in resolving distressed assets, managing and recovering debt portfolios and is behind successful reference projects in the Czech Republic and Slovakia.

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